Construction contract in Estonia (reconstruction of Peterburi road section in Tallinn)

On August 19, 2025, Tallinna Teede AS, part of AS Merko Ehitus group, and Tallinn Urban Environment and Public Works Department, with co-financiers AS Tallinna Vesi and OÜ Rail Baltic Estonia, entered into an agreement for the reconstruction of the Majaka – Väike-Paala section of the Peterburi road in Tallinn.

The 590 m long section to be reconstructed starts at the intersection of Majaka Street and ends at Väike-Paala Street. The works include renewing the road surface and underground communications, making the intersections safer, constructing nearly 3.5 km of new water and sewage pipelines and approximately 600 m of a new gas pipeline. In addition, more than a kilometre of separated pedestrian and bicycle paths will be constructed, making access to the future Ülemiste joint terminal smoother and safer, creating a balanced traffic space.

The contract value is 6 million euros, plus VAT. The construction works are scheduled for completion in the fall of 2026.

Tallinna Teede AS () is a road construction company that performs road construction, maintenance and repair works all over Estonia. The company has its own asphalt plant and an accredited laboratory for testing road construction materials.

Additional information: Jüri Läll, CEO of Tallinna Teede AS, phone: .

Urmas Somelar

Head of Finance

AS Merko Ehitus

AS Merko Ehitus () group companies construct buildings and infrastructure and develop real estate. We create a better living environment and build the future. We operate in Estonia, Latvia, and Lithuania. As at the end of 2024, the group employed 605 people, and the group’s revenue for 2024 was EUR 539 million.